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Tesla seeks $1.5 billion junk bond issue to fund Model 3 production

14:16 EDT 7 Aug 2017 | Yahoo News

Tesla seeks $1.5 billion junk bond issue to fund Model 3 productionBy Nick Carey and Paul Lienert DETROIT (Reuters) - Tesla Inc said on Monday it would raise about $1.5 billion through its first-ever offering of junk bonds as the U.S. luxury electric car maker seeks fresh sources of cash to ramp up production of its new Model 3 sedan. The move to issue junk bonds - lower-quality investments that offer higher yields - represents a bet by Tesla Chief Executive Elon Musk that bond investors will be as hungry as stock investors to back the company on expectations that its Model 3 will be a hit. Tesla shares are up 67 percent this year, pushing the company's market value to about $60 billion, above that of top U.S. automakers General Motors Co and Ford Motor Co , even though Tesla has yet to make an annual profit.


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